VW and Iogen Consider Building Cellulosic Ethanol Plant

Cellulose ethanol is considered one of the more promising alternative fuels and is particularly popular with many environmentalists because it uses agricultural waste and would create a potentially important new market for farmers.

Published: 09-Jan-2006

WA -- One of the world's largest auto makers is hooking up with an Ottawa technology company with the hope of becoming the first car company to invest in an alternative fuel for existing vehicles.

Volkswagen AG of Germany and Iogen Corp. say they're considering building the world's first cellulose ethanol plant, a fuel that can be used with standard vehicles but is not yet mass produced.

"We are strongly committed to reducing dependence on fossil fuels," said VW chief executive officer Bernd Pischetsrieder yesterday in a press release.

Senior officials at the two firms, along with international oil giant Royal Dutch Shell PLC, announced yesterday at the North American International Auto Show in Detroit they will conduct a feasibility study into a proposed facility in Germany.

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